Empowering Leadership and OCB: The Roles of Psychological Empowerment and Emotional Intelligence
Moh. Ali SHAHAB Faculty of Economics
Sekolah Tinggi Ilmu Ekonomi (STIE) Semarang Semarang, Indonesia
Agus SOBARI Faculty of Economics Universitas Islam Sultan Agung
Semarang, Indonesia
Udin UDIN
*Faculty of Economics and Business Universitas Diponegoro
Semarang, Indonesia Email: udin_labuan@yahoo.com
Abstract: The quality of medical services has become the main target in national development planning in Indonesia. The objective of this study is to explore and analyze the effect of empowering leadership on organizational citizenship behavior (OCB) through psychological empowerment and emotional intelligence.
Data is collected from 125 sets of the employee in the medical service industry of Jepara district – Indonesia.
By using structural equation modeling (SEM) with SmartPLS 3 software, this study reveals that empowering leadership is related to organizational citizenship behavior. This study further proves that psychological empowerment and emotional intelligence serve as significant mediating in the relationship between empowering leadership and organizational citizenship behavior.
Key-Words: empowering leadership, psychological empowerment, emotional intelligence, organizational citizenship behavior
*
Corresponding author: udin_labuan@yahoo.com
1. Introduction
The quality of medical services has become the main target in national development planning in Indonesia. This is done to encourage the improvement of the quality of human resources and services. This includes medical personnel who need planning, education, empowerment, coaching and quality control.
However, internal problems in the healthcare service industry have not obviously been synchronized, and are in line with the demand for quality improvement of medical services for the public. Some notes related to the internal issues appearing deal with; government regulation inconsistency in the field of health, absence of standard systems regarding performance evaluation and incentive (reward and punishment), lack of inaccuracy in coaching career of medical personnel, poor discipline enforcement towards indiscipline behavior and irregularity actions, weak leadership roles in each work unit, and low consciousness aspect of performing duties in a more professional manner, as well as lack of sharing and assisting roles with colleagues.
Those are some factors which have negative impacts on various efforts to increase the quality of medical personnel performance in the medical service industry. Of several problems that exist managed by local government, for example, the aspect of leadership roles in encouraging medical personnel performance is crucial, because in various studies, empowering leadership roles, for example, it can foster and encourage the emergence of initiation, work conductivity, innovation, work creativity, and encourage the emergence of a teamwork culture where team members can share and help each other.
Empowering leadership research has been conducted on two main perspectives. The first perspective is on leaders' actions, especially sharing power or assigning responsibility and autonomy to workers. Whereas, the second perspective discusses worker's response to empowerment by looking at their motivation. Wikaningrum, Udin, and Yuniawan (2018); Srivastava, Bartol, and Locke (2006) accommodate these two perspectives by examining the influence of empowering leadership on team performance.
There are many factors to achieve better service quality for service providers, such as encourage sincerity, happy feeling and the emergence of a culture where employees will work together, helping each other in order to give the best to customers (Srivastava, 2006). Many studies have discussed the importance of the correlation between
organizational citizenship behavior (OCB) and service quality. The basis of the research finding stated that the factor that may support employees in performing a good service quality is by having OCB (Barroso Castro, Martín Armario, & Martín Ruiz, 2004; Handayani, Udin, Yuniawan, Wikaningrum,
& Supriyati, 2018; Hui, Lam, & Schaubroeck, 2001;
Sulistiyani, Udin, & Rahardja, 2018).
The improvement of OCB is influenced by two main factors, namely factors coming from within employees such as moral, satisfaction, and positive attitude; and factors originating from outside employees such as management systems, leadership systems, coaching, corporate culture (S.
Panjta Teak, 2011). Furthermore, there are three important internal factors that will put an effect on OCB, namely employee’s moral (Organ and Ryan, 1995), commitment (Posdakoff &
Mackenzie, 1994), and motivation (Bienstock, DeMoranville, & Smith, 2003).
Handayani et al. (2018); Najafi, Noruzy, Azar, Nazari-Shirkouhi, and Dalv (2011) state that psychological empowerment has a positive significant effect on employees’ OCB. The higher the psychological empowerment is, the higher OCB of the employee in contributing to the organization will be. Furthermore, Bogler and Somech (2004) conclude that there are only three dimensions of psychological empowerment, namely decision-making, self-efficacy, and status, which have a positive effect on employees’
OCB. While the other dimensions such as autonomy, impact and professional growth have no significant effects on OCB. Given the preceding arguments, this study is conducted to examine the relationship between empowering leadership and organizational citizenship behavior mediated by psychological empowerment and emotional intelligence.
2. Literature Review
2.1 Organizational Citizenship Behavior (OCB)
The concept of OCB was first introduced by Organ and Ryan (1995) and has been discussed in detail by Organ and Ryan (2005). According to Organ and Ryan (1995), OCB is a special type of work habits which defines individual behavior as highly favorable to the organization and a freedom of choice, indirectly or explicitly recognized by the formal reward system.
Triyanto and Santosa (2010) argue that OCB has the characteristics of extra-role behaviors
which are not included in the job description, spontaneous behavior/without specific suggestions or commands, helpful behavior, and behavior which is not easily visible and assessed through performance evaluation. Behavior helps employees with work when the employee is absent, orientation helps new employees in the department where they work, the supervisor's assistant with tasks, as well as supervisors coming early or staying late. So it can be concluded that OCB is a willingness to cooperate outside individuals without expectation of reward.
Sumiyarsih, Mujiasih, and Ariati (2012) defines OCB as informal behavior, exceeding the normal expectations of the organization and all of which ultimately can trigger the welfare of the organization. Organ and Ryan (1995) states that OCB has five dimensions including:
1. Altruism is a voluntary behavior of helping others, especially those dealing with tasks beyond their responsibilities.
2. Courtesy is a behavior in which employees behave politely and according to rules, to prevent the onset of interpersonal conflict.
3. Sportsmanship is a behavior which shows high tolerance of the organization so that someone behaves positively and avoid complaints.
4. Conscientiousness is a voluntary behavior which exceeds basic or minimum requirements of work in compliance with work rules.
5.
Civic virtue is a behavior which shows participation and concern for organizational survival.2.2 Empowering Leadership
Empowering leadership is a type of leadership which highlights the importance of commitment to implementing performance, opening wide participation in decision-making, and upholding work-orientation to achieve high performance (Srivastava et al., 2006). According to Herre (2010), empowering leadership is a heterogeneous concept consisting of various types of characters, namely collective leadership, facilitative leadership, and participative leadership. All these different concepts are summarized in the type of empowering leadership.
Empowering leadership is a behavior in which leadership power is shared with subordinates to increase their intrinsic motivation, empowering leadership behavior is leading by providing examples, making participatory decisions, providing training, providing information, and showing concern (Srivastava et al., 2006).
According to Srivastava et al. (2006), empowering leadership has four elements: (1) empowering leadership related to knowledge sharing, (2) in knowledge-sharing related to team performance, (3) empowering
leadership related to team performance, and (4) the strength of the relationship between empowering leadership and team performance decreases when knowledge sharing is added to the model as an intermediary.
In leadership empowering, leaders strive to commit to hard-working, obtaining information from subordinates in implementing the decisions of the organization to work together to achieve goals. This is in accordance with Srivastava’s opinion (2006) that empowering leadership assessment to have five factors, namely :
1. Leading by example: showing behavior which indicates that leader is committed to hard working. Thus, the leader acts as a role model for the team.
2. Participation in decision-making: leader makes uses of information and input from team members in decision making.
3. Coaching: leader helps train team members to become independent,
4. Informing: leader communicates information about the organization, objectives and mission policies.
5. Showing concern/interacting with the team:
the leader keeps in touch with the team and works with the team as a whole.
While, empowering leadership indicators according to Srivastava et al. (2006) are:
1. Enhancing the meaningfulness of work 2. Fostering participatory in decision-making 3. Expressing confidence in high
4. Providing autonomy from bureaucratic constraints
In addition, participatory decision making and coaching behavior of an empowering leader will encourage knowledge sharing within the team.
The research findings of (Akbar, Udin, Wahyudi, &
Djastuti, 2018; Handayani et al., 2018; Kim &
Beehr, 2018; Najafi et al., 2011; Sulistiyani et al., 2018) state that empowering leadership has a significant positive effect on psychological empowerment and OCB. Therefore,
H1: Empowering leadership is positively related to psychological empowerment
H2: Empowering leadership is positively related to OCB
In empowering leadership, leaders are always committed to working hard, obtaining
information directly from subordinates, running organizational decisions through mutual work mechanism, and always trying to improve employees’ emotional intelligence (Hess &
Bacigalupo, 2011; Srivastava et al., 2006).
Therefore,
H3: Empowering leadership is positively related to emotional intelligence
2.3 Psychological Empowerment
Psychological empowerment deals with how employees perceive their positions in the work environment and how they feel capable of contributing to the organization (Najafi et al., 2011). Based on the opinion of Conger and Kanungo (1988), the concept of empowerment is a motivational construct which is ultimately referred to as psychological empowerment, which means the process of members' self-efficacy of the organization through the identification of conditions that lead to disability, identification strategy to eliminate the disability.
Conger and Kanungo (1988); Thomas and Velthouse (1990) provide the definition of psychological empowerment as an intrinsic task motivation. Najafi et al. (2011) defines the concept of psychological empowerment as "enhancing an individual’s intrinsic motivation towards his/her tasks manifested in four forms of cognition:
meaning, competence, self-determination, and impact". Therefore, it can be concluded that psychological empowerment is the increase of one's intrinsic motivation toward their own roles of work.
Spreitzer, De Janasz, and Quinn (1999) defines psychological empowerment as a motivational construct manifested in four forms of cognition:
1. Meaning refers to the value of a professional intention/purpose and relates to individual standards/idealism about a profession.
2. Competence is an individual's belief in their abilities to perform work activities.
3. Self-determination is an individual feeling which reflects the freedom to organize and determine how to perform the work in the profession.
4. The impact is the degree of individual influence on the scope of work.
Empowerment is a management technique used by companies to improve organizational effectiveness (Conger & Kanungo, 1988; Spreitzer et al., 1999). According to Erdogan, Ozyilmaz, Bauer, and Emre (2018), working in an empowered condition has a positive impact on employees,
which is increased feelings of self-confidence and job satisfaction, higher motivation, and low physical/mental fatigue. Working situations in structural empowerment will be more likely to have management practices which can increase employee’s feelings about trust in the organization and job satisfaction (Chamberlin, Newton, &
LePine, 2018).
The correlation between constructs in Chamberlin et al. (2018) study leads to the findings that psychological empowerment has positive and significant effects on job satisfaction. The effect of psychological empowerment on job satisfaction is 0,137 (p <0,05). This finding is consistent with that of (Spreitzer et al., 1999). "In this case, the lecturers who experience psychological empowerment will feel worthed or meaningfulness of the work, feel more competent or have self- efficacy in carrying out the role of work and have self-determination and feel capable of giving impacts on the work results on the organization, which ultimately affects the level of job satisfaction (Najafi et al., 2011).
The finding of
Abdulrab et al. (2018);
Handayani et al. (2018); Najafi et al. (2011); Singh and Singh (2018) state that psychological empowerment has a significant positive effect on OCB. The higher the psychological empowerment is, the higher OCB of employee to the organization.
Therefore,
H4: Psychological empowerment is positively related to OCB
2.4 Emotional Intelligence
The term ‘emotional intelligence’ was first raised in 1990 by psychologist Peter Salovey of Harvard University and John Mayer of the University of New Hampshire to explain the seemingly important emotional qualities for individual success. Salovey and Mayer (Sumiyarsih et al., 2012) define emotional intelligence as a subset of social intelligence which involves the ability to monitor either oneself’s feelings and emotions or others’, to sort them, and to use this information to develop thoughts and actions.
The definition explains that emotional intelligence is concerned with directing one's actions in personal and social life. Mayer et al.
(2001) defines emotional intelligence as a set of personal, emotional and social abilities which affect a person's ability to succeed in addressing environmental issues and pressures. Therefore, it can be concluded that emotional intelligence is the ability of a person to monitor feelings and emotions
within themselves, a person's ability to overcome problems and obstacles and the ability of a person to turn the deficiency into an advantage.
Sumiyarsih et al. (2012) divides aspects of emotional intelligence into five basic aspects, including:
1. Self-awareness, knowing ability perceived.
2. Self-regulation, the ability to regulate one’s own emotions so that giving a positive impact on the task implementation.
3. Motivation, ability to use the desire to move and guide oneself toward the goal.
4. Empathy, the ability to feel others’ feelings and be able to understand others’ perspectives.
5. Social skills, the ability to respond emotionally well when connecting others, being able to read the situation and social network carefully, being able to interact.
Individuals need to have emotional intelligence because the emotional condition can affect thoughts, speech, or behavior, including in work. Individuals who have emotional intelligence will be able to figure out emotional condition. Many academically intelligent people, with lacking emotional intelligence, fail to succeed at work (Sumiyarsih et al., 2012). Emotional intelligence can also determine one's potential to learn practical skills and support performance (Sumiyarsih et al., 2012). OCB and Emotional Intelligence of each organization has a provision which regulates the work of each employee so that the work can be well coordinated. The organization organizes it by specifying the job description to be done by the employee.
The job description is a statement which is organized arranged towards the tasks and responsibilities of a particular job (Sumiyarsih et al., 2012). Job description determines divisions which carry out the work so that the company is able to achieve its goals efficiently. Ideally, OCB employees are needed by organizations or companies to achieve the effectiveness and objectives of the company (Sumiyarsih et al., 2012). Sumiyarsih et al. (2012); Miao, Humphrey, and Qian (2018); Turnipseed (2018); Udin, Handayani, Yuniawan, and Rahardja (2017) states that emotional intelligence positively affects OCB. This means that the higher emotional intelligence is, the higher the human resources’
extra behavior will be. Therefore,
H5: Emotional intelligence is positively related to OCB
3. Materials and Methods
3.1 Population and Sample
The object of this study is public health service industry belonging to Local Government of Jepara, Indonesia. Therefore, the population is 1218 medical personnel (doctors) who were actively working in the government-owned health services.
By using purposive sampling, the sample determined is 125 doctors.
3.2 Variables and Indicators
The variable and indicator in this study is presented in Table 1.
Table 1 Variables and Indicators
No. Variables Indicator
1. Empowering Leadership is leadership which gives the opportunity to members, willing to receive fair recognition in
contributing members to ideas and information, leader motivates members to share their knowledge one another (Zang and Bartol, 2010).
1. Enhancing the meaningfulness of work 2. Encouraging participation in decision-making 3. Strong confidence to perform high performance 4. Providing autonomy from bureaucratic
constraints
2. Psychological Empowerment is an increase in one's intrinsic motivation in their work (Spreitzer, De Janasz, & Quinn, 1999)
1. Value of meaning of a profession purpose 2. Competence
3. Freedom to perform work
4. Individual impacts on the work environment
3. Emotional intelligence
is one's ability to monitor feelings and emotions, one's ability to overcome problems and obstacles and one's ability to turn
deficiencies into
advantages (Goleman, 2005)
1. Self-awareness 2. Self-control 3. Motivation 4. Empathy 5. Social skills
4. OCB
is the willingness to cooperate beyond individual without
expecting rewards (Organ & Ryan, 1995)
1. Voluntarily to help others (altruism)
2. Polite and appropriate procedures (courtesy) 3. Tolerance (sportsmanship)
4. Deep awareness to abide by rules (conscientiousness)
5. Participation and awareness of organizational survival (civic virtue)
3.3 Data Analysis
The data analysis for testing result of the structural equation model is partial least square method (PLS).
This technique is usually done with two stages: (1) The measurement model of a construct with reflective dimension, through indicators: convergent validity, discriminant validity, and unidimensionality; and (2) The model significance test/ hypothesis testing, where the test is done by looking at the probability value and t-statistics.
4. Results
4.1 Measurement Model
Discriminant validity represents the cross-loading value of each factor towards its constructs.
Measurements are useful for knowing whether the construct has adequate discriminant to be a variable. Table 3 shows that the loading value of each item towards its construct is greater than the cross-loading value. From the results of the cross- loading analysis, it appears that there is no problem discriminant validity.
Table 2 Discriminant Validity Empowering
Leadership (EL)
Psychological Empowerment (PE)
Emotional Intelligence (EI)
OCB
EL1 0.742
EL2 0.847
EL3 0.883
EL4 0.865
PE1 0.883
PE2 0.913
PE3 0.920
PE4 0.924
EI1 0.896
EI2 0.853
EI3 0.885
EI4 0.904
EI5 0.945
OCB1 0.784
OCB2 0.763
OCB3 0.753
OCB4 0.787
OCB5 0.792
Source: Own calculations
Table 3, as the basis of the convergent validity assessment, shows that all indicators of the variables are above 0.7. Thus, all indicators of latent variables is valid. The reliability test is
reinforced with Cronbach alpha value. The value is expected > 0.6 for all constructs. The unidimensionality test is performed using composite reliability and Cronbach's alpha value.
For both of these values, the cut-off value are 0.7.
Table 3 Composite Reliability
Cronbach's
Alpha
Composite Reliability
Average Variance Extracted (AVE)
Empowering Leadership 0.895 0.902 0.899
Psychological Empowerment 0.873 0.917 0.886
Emotional Intelligence 0.852 0.910 0.871
OCB 0.931 0.951 0.829
Source: Own calculations
Table 4 Hypotheses Testing
Original
Sample
Standard Deviation
T- Statistics
ρ Values Direct Effect
Empowering Leadership Psychological Empowerment
0.194 0.071 2.732 0.010*
Empowering Leadership Emotional Intelligence 0.290 0.087 3.333 0.002*
Psychological Empowerment OCB 0.178 0.104 1.712 0.093**
Emotional Intelligence OCB 0.774 0.168 4.607 0.000*
Empowering Leadership OCB 0.514 0.096 5.354 0.000*
Indirect Effect
Empowering Leadership Psychological Empowerment OCB
0.083 0.219 0.265 0.488***
Empowering Leadership Emotional Intelligence OCB
0.41 0 0.185 2.223 0.027*
Source: Own calculations
Notes: * significant on ρ < 0.05; **significanton ρ < 0.10
The results of the statistical analysis show that the direct path effect of empowering leadership gave support to psychological empowerment and emotional intelligence. Both paths proved a positively significant effect on ρ <0.05. Likewise, the direct path effect of empowering leadership and psychological empowerment, as well as emotional intelligence to OCB. All three of them also have a significant positive effect on ρ <0.05.
For indirect path effect, the effect of empowering leadership to OCB through emotional intelligence proved a significantly positive ρ
<0.05. Thus, emotional intelligence can be a factor which mediates the relationship between empowering leadership and OCB. Meanwhile, empowering leadership effect on OCB through psychological empowerment is significantly
positive ρ <0.05. Thus, psychological empowerment cannot be a mediating factor between empowering leadership and OCB in case of medical service industry.
5. Discussion
The results of hypotheses testing show that there is a significant and positive effect of empowering leadership on psychological empowerment and OCB. It means that higher role of empowering leadership will increase its impact on psychological empowerment, which in turn, improve OCB among medical personnel.
The improvement of OCB is influenced by two main factors, internal factors such as moral, satisfaction, positive attitudes, and external factor that comes from outside employees, such as
management system, leadership system, organizational culture (S. Panjta Jati, 2011). These findings are in line with (Handayani et al., 2018;
Najafi et al., 2011) which states that psychological empowerment has a significant positive effect on OCB. The higher the psychological empowerment is, the higher the extra-role the employee gives to the organization will be.
Privrivava's (2006) empirical finding state that in the realm of empowering leadership, a leader always strive to commit to hard-working, obtaining information from subordinates in implementing organizational decisions to improve employees' emotional intelligence. The more leaders implant the soul and spirit of work meaningfulness, the more self-awareness of employees increase. The more leaders increase participation in decision-making to improve self- regulation, the higher the level of participation of employees to performing their work.
Based on the results, it can be concluded that there is a significant and positive effect of emotional intelligence on OCB. It means that the higher emotional intelligence is, the higher OCB will be. These findings support (Sumiyarsih et al., 2012; Udin et al., 2017) empirical findings, stating that emotional intelligence positively affects OCB.
This means that the higher emotional intelligence is, the higher OCB will be. This condition can improve employees' faith because they are more well-knowledged and upholding religious values and implementing it on daily behavior. The implementation of religious values such as having confidence and consistency and feeling-sensitivity (self-awareness), being always grateful, not easily angry and forgiving (self-regulation), maintaining the trust of others and care and respecting others (having empathy), keeping temptation or pressure away, always thinking positively and feeling motivated to reach the best.
6. Conclusion
The main factors affecting the decrease of public health service are the government regulation in improving the service quality of doctors and health workers. Health infrastructure also needs to be regularly repaired and need to be renewed, whereas the knowledge of doctors and health workers needs to be developed by various comprehensive training.
On the other side, leadership empowerment and psychological empowerment are substantially needed to prepare the best quality of doctors and health workers to increase the responsibility to public health. As a result, OCB will be able to be
developed in order to improve performance and organizational development.
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